Incentives for Buying an Electric or Hybrid Vehicle

Many people today think that electric and hybrid vehicles are new technology, but electric cars have been around since well before combustion engines arrived on the scene. Electric vehicles were quite popular back in the late 1800s and early 1900s. Even New York City’s first fleet of taxis were electric cars.

Incentives for Buying an Electric Vehicle

So, what happened? Well, the combustion engine was in its infancy. It was challenging to start, using a crank to get it going. Also, there were a lot of fumes, and it smelled. That is why electric cars were more popular back then, but the popularity didn’t last. Combustion engine cars were cheaper to make and more affordable to buy. In the end, the lower price always wins out.

That’s not the whole story. There were other advancements in combustion engine technology. You got much more range, and fuel was cheap and abundant. Once they figured out how to do away with the crank to get the engine going and added a tailpipe to send the exhaust out the back of the car, it all but sent the electric vehicle into near extinction.

Environmental Concerns

Fast forward to modern times, and we’re now dealing with an epidemic. Environmental concerns are making their way to the forefront of people’s minds. Due to more than a century of burning fossil fuels and other pollution, pollution is threatening our planet. People are giving electric and hybrid cars a second look to reduce pollution.

The problem is that electric cars still aren’t cheap. They’re still more expensive than combustion engine cars by as much as 20%. The price is keeping people away from investing in eco-friendly vehicles. To counter this cost, the government has decided to offer a bunch of different incentives and credits to inspire you to buy them.

also read: 8 Things to Know Before Buying a Hybrid Vehicle

Tax Credit and Incentives

You will have to do a lot of research before purchasing an electric car. There are a lot of varying factors that depend on what you buy and which state you live in. Federal rules can be challenging to understand, so find a dealer who knows what they’re talking about and bring your research to the table.

The federal government will grant a tax incentive of up to $7,500, but there’s a catch. It’s not a blank check for everyone. You only get a total of $7,500 if you owe that much in taxes. If you owe $5,000, then you’ll only get $5,000 in credits. And no, you won’t get the difference. It is what it is. But state-level benefits exist too, but they vary per state. Of course, states like California have better incentives than less environmentally savvy ones.

The credits will also depend on the side of the battery in the car. Different cars will have various benefits, so accomplish your homework. Some models will get you more incentives, and some don’t have any at all.

Source: https://www.edmunds.com/fuel-economy/the-ins-and-outs-of-electric-vehicle-tax-credits.html